iHub Mining Sector Entrance Lobby

[echarters]

You can only valuate a company by the ounces in the ground if they intend to mine them. Quite a few companies make you think that the value is X but until a feasibility is produced with metallurgy mining costs etc.. it is an exceedingly hopeful forward looking statement. For this reason you cannot valuate on drill holes and widths with any certainty.. Cash in the kitty all depends on the burn rate. I cannot imagine any sort of cash that would last a junior explorer with five drillers more than two or three years, so you have to discount heavily because of that. And if they don't burn cash you are never going to see anything but guesses at value.. hype.. you cannot mine hype.. well I guess Bre-X did, but it smelts poorly

It's all promotion.. and what kind of deal are they going to make? 3% smelter and a few shares? We KNOW Almaden picks the right "mines" and gets deals. They are all farm out, earn-ins but their burn rate is low too, so they can last. They line em up, and let others who are fairly good explorers outline them. It does not make for an exciting stock but is has growth potential. It's all in who and how you connect with.

If you wanted me to make a comparison, I would say despite the cash, that Almaden has the better spin-off game so ultimately they get a higher value. Personally I would try to produce, but some see that has higher risk. It can be. But it is also a risk to believe you can always get cash to explore with if there is no other cash cow than the public's interest in your "story".

EC<:-}